FANGZHOU JIANKE (06086) 2025 Results: Revenue Up 30.20% to RMB3.53 Billion, Swings to RMB12.00 Million Net Profit

Bulletin Express
03/19

Fangzhou Inc. (stock name FANGZHOU JIANKE, 06086) released its audited results for the year ended 31 December 2025.

Revenue and Earnings • Revenue jumped 30.20% year-on-year to RMB3.53 billion, supported by continued expansion in online pharmacy, wholesale and medical service operations. • After a RMB854.89 million loss in 2024, the group reported a RMB12.00 million net profit, or RMB0.01 basic earnings per share. • Adjusted net profit (non-HKFRS) rose 19.15% to RMB20.40 million; adjusted net margin held flat at 0.60%.

Segment Performance • Online retail pharmacy: revenue climbed 33.40% to RMB1.87 billion; gross margin 21.0% (2024: 22.6%). • Comprehensive medical services: revenue grew 21.90% to RMB788.22 million; gross margin fell to 11.0% (2024: 17.2%) amid product-mix adjustments. • Wholesale: revenue increased 41.60% to RMB780.17 million; gross profit reached RMB12.64 million. • Customized content & marketing solutions: revenue slipped 19.70% to RMB84.38 million, but gross margin improved to 78.9% (2024: 74.4%).

Cost and Margin Dynamics • Overall gross profit rose 8.40% to RMB559.44 million; group gross margin narrowed to 15.9% (2024: 19.1%) on segment-mix changes. • Selling and distribution expenses grew 12.80% to RMB401.24 million, representing 11.4% of revenue (2024: 13.1%). • Administrative expenses plunged 83.80% to RMB147.29 million following a sharp reduction in share-based compensation.

Balance-Sheet Highlights • Total assets stood at RMB813.89 million, with cash and cash equivalents at RMB233.49 million (2024: RMB174.64 million). • Net assets increased to RMB153.73 million from RMB131.70 million a year earlier. • Average inventory turnover shortened to 19.8 days (2024: 23.1 days). • Current and quick ratios were unchanged at 1.2 and 0.9 respectively; gearing ratio remained 0.8.

Operating Metrics • Average monthly active users expanded 35% to 13.70 million. • Registered doctors exceeded 251,000, with 57% from Class III hospitals. • User repeat-purchase rate stayed above 85%; prescription drugs represented over 80% of GMV.

Technology and Strategic Moves • Introduced the “XingShi” large language model, enabling multimodal AI agents such as AI EMR, Pre-Consult and Doctor Assistant tools. • Formed partnerships with Tencent, Novo Nordisk, Otsuka and Innovent Biologics to broaden therapeutic offerings. • Enhanced AI-driven procurement, cutting average inventory days by 3.3 days year-on-year.

Post-Period Capital Raising On 2 February 2026 the company completed a HK$144.30 million share placement at HK$3.32 per share, earmarking 90% of proceeds for AI-driven chronic-disease-management platform development and 10% for general working capital.

Dividend The board proposed no final dividend for FY 2025.

Governance Update In December 2025, Mr. Xie resigned as chairman and CEO; non-executive director Mr. Hand became chairman while the CEO position remains vacant pending a formal search.

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